How speculators make profits-do more or short

You can purchase more futures contracts, and the gambling price will rise. This is called "low price, high price 」. Traders will analyze the supply and demand of cocoa beans, including in-depth studies of the political situation in Côte d'ivoire, and determine that the situation in Côte d'ivoire is really quiet. Before the end of the year, the war may erupt, pushing up the price of cocoa beans, therefore, I decided to buy a futures contract and use cohoop beans. The actual situation of this practice may be the same as described below:

● Do you still remember that my chocolate company used the December futures to hedge against cocoa beans and bought them at $ June per ton in one thousand three hundred? Traders may be buying cocoa futures for $ one thousand three hundred, but now in September, the public market's December futures price has risen to $ one thousand three hundred and ten.

● At this time, the person holding a contract was not ignorant of the Situation in Côte d'ivoire, but thought that the price could not increase by another ten dollars, so he was willing to sell.

● Speculators demanded a price of one thousand three hundred and fifteen US dollars and finally sold for one thousand three hundred and twenty US dollars in the Public Shouting system. This means that the seller makes a net profit of 20 US dollars per ton, that is, two hundred US dollars per contract (20 US dollars multiplied by 10 us tons of standard cohoop contract ).

● The next day, a violent conflict broke out in Côte d'ivoire. In December, the price of cocoa beans soared by $40. Traders can sell for profit or wait until the December futures delivery date, hoping the price will rise higher.

If he wants to wait and the result is wrong, the situation in Côte d'ivoire will go straight down and bring peace to the next level. What should he do if he falls the price of cohole beans back to $ one thousand three hundred? He will be forced to swallow the bitter fruit and sell his part, hoping that luck will improve tomorrow.

But speculators can also leave futures empty, and the gambling price will fall. This is called "selling high and buying low 」. Void is one of the most annoying ways for new users, but it is the most convenient way for experts to make money by others. I still remember the moment when I first went to work in a Wall Street company during the summer vacation when I was in college, I knew that I could use a gambling company's share price to make money. You can imagine, I found that I was happy to sell my shares that I did not own legally.

I know this sounds strange, but we often sell things that do not belong to us or that we don't have, just like a car dealer selling a model or color car that you haven't placed in a parking lot. In the S and S, when gasoline prices soared, long queues ordered highly energy-efficient and hybrid cars that had not yet been delivered; magazine publishers asked us to subscribe to magazines that were not published and will be received in the future; those who love to listen to the concert should first buy tickets for future concerts. If Tom catches a cold or Miss branny's knee is hurt, the concert will be canceled, and the organizer (short) will refund the money to the person who buys the ticket (to fill up the short position ).

The method to empty a stock is to find the company that you think is heavily overestimated and the stock price is about to fall. In the final phase of the network bubble, you can drop the blank target in the stock market list in that region. Cisco rose to a historic price of one hundred and forty US dollars on, while unifeis rose to more than US dollars at the same time. At that time, the savvy shorts could call the salesperson and asked the salesperson to empty a large number of Cisco and unifeis shares.

In this case, most people try to buy low-selling and high-selling resources when investing. For example, they buy one hundred shares of Company A at a price of 10 billion yuan per share, then, when the share price rises to $15, it is sold and the profit is $ five hundred. Playing empty is just the opposite: you sell a stock for $15 and then buy it for $10. In this example, you make the same transaction, if you make the same amount of money, the order is reversed. if you sell it first and then buy it again, the gambling stock price will fall. Therefore, you can buy a higher price and make a lower price. Stocks, bonds, foreign currencies, and commodities can all be done in this way.

How can you sell what you don't have? It's easy to borrow from a bank, broker, friend, or anyone who owns or can obtain such a thing. For example, if they lend you one hundred shares of Company A, you sell at $15 per share and get $ one thousand five hundred. Then the stock price fell to 10 billion yuan. You bought one thousand million shares for one hundred US dollars, and then you returned one hundred million shares to the person who lent you the coupon. The property cost is five hundred US dollars more. Of course, if you bet wrong, as Company A's share price keeps rising, you have to pay for the price difference.

Commodity speculators can also make profits from the price drop. The stock market may have a situation where the stock price of a document is extremely fair and there is no place for short. Different futures markets, each part of the short market has a relatively long position. If someone makes money, someone else loses money, and vice versa. When you bet on the Green Bay Packers team to win, they expect their opponents to lose. There is another difference between the commodity market and the stock market and the foreign exchange market. When commodity speculators decide to leave the market empty, they will not find people with actual assets and then leave the market blank, what he sells is not an actual commodity, but a contract for future delivery of the commodity. Speculators only need to ask the salesperson to sell a contract at a certain price (or the closest price) and wait for the price to rise or fall. He doesn't have to borrow anything. He just needs to raise some deposits, but does not need to take too much. As long as the contract value is five % or one ○ %, It is enough. The following are possible conditions for using cohoop beans in a short position:

● After a period of violence in Côte d'ivoire, another trader may think that the price of December US dollars for coconut beans in one thousand three hundred and sixty is too high, reflecting fears that exceed the fundamental supply and demand factors of coconut beans, so there is no shortage of coconut beans.

● His bet Price would fall, and he asked the salesperson to leave a one thousand three hundred and sixty futures contract at a price of $. He hoped to buy the same contract at a much lower price before the delivery date in December, flattening transactions (a 10-ton contract worth $ thirteen thousand six hundred ). The salesperson completed the transaction.

● Speculators will not give the beans to anyone. We have seen that most traders in the futures market have settled transactions before the delivery date. However, the purpose of the invention of the futures market is to avoid risks for consumers and producers. Therefore, some traders may consider delivery. If farmers who plant cohoop beans think the price may fall, we can sell the one thousand three hundred and sixty contract at a price of $ December per public ton, hoping that by the delivery day, the price will fall and he will make a profit; then his neighbors will also hand over the cow beans, the price is relatively low.

● In less than a month, the United Nations announced that it would dispatch peacekeeping troops to this region. The price of cohox beans began to fall. Speculators who sold the cohox beans were doing the right thing, and the price fell to $ one thousand three hundred and forty per ton. He asked the salesperson to buy another cow contract at the market price, and the Clerk tried to buy the contract for $ one thousand three hundred and thirty, making the speculator $ thirty per ton, that is, one contract earning $ three hundred.

Traders sometimes leave it empty without reason, And they intuitively think that the price will drop sharply. In 1987, I put soy beans empty when I rose to more than $9 per English cup. All the traders I know are crazy about buying and making comments that prices will rise further. However, at that time, I have learned a lot from the hysterical market. At the beginning of the multi-headed market, almost no one will notice it, but during the Rising Price period, the savvy investors will see the signs of growth. Soon, although the market is fixed on a regular basis, the price continues to rise, in the end, others become equally optimistic. Everyone in the market makes money, and those who wait outside the market will not notice it, so more people are put into the market. Soon, the original rational people quit their jobs, start to write off for life on the current day. I started to leave it empty when the crazy hysterical situation emerged. When I put soy beans empty in 1987, it was actually another round of hysterical. The soybean price has fallen, and I have made some money. It is usually not wrong to leave it blank during the hysterical period. However, I suggest you try to find a good fundamental cause when determining that the price may fall.

The profit of speculators lies in the price difference between the original price and the lower price. If he makes a mistake and the price increases, he must buy futures at a higher price and make up for the short position, so he will lose money.

When every speculator did something wrong, I clearly remember that I had put oil off in years, and the oil price had risen for many years. However, due to the increase in production and energy conservation, supply had increased. In, the supply actually exceeds the demand, but the oil price continues to rise unreasonably. In, I think the market will soon notice that the fundamentals of oil are completely unbalanced, so I decided to bet that oil prices fell. What I did not expect was that our friend (who was then an American ally), Saddam Hussein, would intrude into the Iran Muslim Republic ruled by Ayatollah Khomeini, the oil export country organization's two countries are in a war of heat, which is not a good time to gamble on falling oil prices. After the war rose, the price began to soar. I tried to fill in the short position. Afterwards, it seems that I should stick to it because the oil price has exceeded and will eventually fall. I have read the fundamentals of oil, but I am as flustered as everyone else.

Below are the basic principles for empty space:
I do not like to leave it empty unless it is too expensive.

I mean, it's so outrageous that people can't believe it. I 've left a lot of expensive things empty all my life, but they see their prices become more expensive. When I first came into Wall Street, I learned the biggest lesson from the market hysterical Science at the University computing. I sold short at forty-eight dollars and waited for the share price to fall. Finally, when my share price rose to dollars, I made up the short position. My college computer continued to rise to about dollars, then plunged to two dollars. I am not wrong when I leave this stock, but I still have to pay off it because I didn't have the courage and money to stick to the belief that this stock has exceeded my head. In the network bubble, I became more savvy, but I guess the young geeks of the entire generation were playing technology stocks, but the stock price rose to a higher value than the day without reason, and I learned the same lesson. The newly established technology company, unifeis, apparently overhead from $20 to $ one hundred and twenty-nine in a year, which is a typical void. The problem is that the market does not pay attention to the actual value. New players in the market think that the good scene will never end. Thanks to the surging popularity, it is hard to believe that unifeis has soared to $80, then it rebounded to its previous high point, then fell to close to ○, and maintained such a low price for the next three years.

In the one hundred s, gold rose sharply from $ one hundred. rational investors may consider leaving gold empty for every one hundred and fifty points increase. When it rose to $ eight hundred and sixty, did some people think that the price of gold would go straight to $? At that time, I did not leave gold empty, but it was indeed empty at $ six hundred and seventy-five. Of course it was too early, but the header appeared around four days later. In the same age, sugar rose from four cents to 40 cents. I think many people think sugar is too expensive. Unfortunately, people who leave sugar empty at 40 cents, after the sugar rose to more than sixty-sixteen cents, the sugar price fell back to reality.